You heard it first on Financial Express, and the much-awaited NSE IPO could hit the streets around Diwali this year, subject to regulatory clearance. However, securing a ‘No Objection Certificate’ is the crucial step, which the markets regulator will only consider after the disposing of an ongoing settlement process.
SEBI’s NoC is a compulsory certificate for Market Infrastructure Institutions to list publicly.
“There is no obstacle remaining in the case of the NSE. There are some legal settlements and other things. Some amount will have to be paid, and those cases would have to be withdrawn, and so on,” said Tuhin Kanta Pandey, SEBI Chairperson.
To go forward with its listing, NSE proposed a Rs 1,600 crore payout to settle regulatory proceedings, which were related to its past compliance lapses. NSE offered the largest settlement amount ever to SEBI.
The proposal is presently being evaluated by a High-Powered Advisory Committee, which will provide its recommendation to SEBI’s Whole-Time Member for a final decision.
The entire procedure may require as much as two months, coinciding with the Diwali season, as per media reports and the Chairman’s perspective while speaking at the Financial Express CFO award meeting.
“The NoC is a non-negotiable requirement under SEBI regulations for MIIs seeking to go public. Until the settlement is completed and the order is issued, the process cannot move forward,” said a person aware of the development.
Mega windfall for Radhakishan Damani
Apart from that, Radhakishan Damani will have another mega multi-thousand-crore windfall due to holding a 1.58% stake in the National Stock Exchange (NSE).
The ace investor’s holdings in the MII are valued at approximately Rs 9,300 crore in the unlisted market. This has emerged as the second-largest holding in his portfolio after Avenue Supermarts (the parent of retail chain major DMart), as per a report by News18.
In early 2020, Damani acquired his stake in NSE privately. He purchased 3.91 crore shares from Norwest Venture Partners.
However, the investor’s over Rs 1.90 lakh crore holding in DMart remains his flagship bet.
Unlisted NSE shares see a sharp spike
In the grey market of unlisted shares, NSE’s shares are trading over Rs 2,300 per equity share.
The frenzy around the NSE IPO raised the investor base fourfold to 160,000 from 39,210 on the anticipation of SEBI giving NOC to NSE, reported mint, citing sources.